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Guangzhou Daklin Training Company was undergoing enormous pressures in running its business in 1999. James, the director of the company, employed local talent in attempt to extricate himself from the predicament. Michael joined the company as a new account manager, and he took measures to strengthen the internal management of the company. As a result, there was an observed improvement in sales. Better business performance, however, brought about internal conflicts. On the one hand, staffs were working under pressures greater than ever before, on the other hand, differences in personality and values contributed significantly to internal conflicts. The fiercest conflict erupted between Michael and Paul, the trainer of the company. At this critical moment, James decided to hold an enlarged management meeting to ease up the tensions. The meeting, however, did not turn out to be what James had expected. Michael refused to make any compromise. The intense clashes resulted in major changes in personnel, and Daklin entered a new era of development. The case analysis is made from the perspective of the management of corporate internal conflicts within the framework of organizational behavior. Internal conflicts are examined in terms of their formation, influence, utilization, management, and prevention, and integrated into the analysis is the interplay of individuals, groups, organization and leadership. The writer attempts to draw some creative inspirations from the case study.
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